UK 07:16 Sunday, 25 October 2026
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Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from ShareProphets). I have no business relationship with any company whose stock is mentioned in this article.
Today I turn your attention to two African plays. On one hand we have Paragon Diamonds (PRG), a diamonds exploration company in Lesotho which is that little country swallowed up by South Africa.
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Comments
JC
Interesting analysis and I must confess I tend to take almost the opposite point of view. I’m pretty neutral on Paragon although I have an indirect investment via Obtala (I would prefer Obtala to sell this and focus on their agri business interests). My preferred diamond play currently is Diamondcorp.
Bushveld is an interesting one. Whilst I agree with you regarding the delay to the JORC update, I don’t believe that this is because it is likely to disappoint but rather they have over committed on moving things forwards. I think the market is looking for 1bn tonnes in this JORC which should not be that difficult to achieve. But to look at Bushveld without considering the unique circumstances associated with the drop, which you (conveniently?) do not mention, is a mistake. The price here has been driven down owing to a distressed sell and a change of strategy by two major investors which saw 130m shares dumped on the market, hence the fall. Obviously this takes some time to digest and I suspect that the share price will be up and down over the next few weeks and months to do so. But to suggest that it’s cash is ‘wafer thin’ is untrue – it has recently raised £1.7m through a placing and warrant exercise (with another £1.3m+ to come) and has control over Lemur’s A$16m cash.
The iron ore resources as they stand are valued at below that of their peers. Maybe with some justification given the location and the fact that larger resources are valued more highly, but given a likely upgrade to 1bn+ tonnes and the fact that the strike length is multiples of that included in the current JORC statement, it would not be too much of a stretch to see the valuation move towards that of its peers.
So, all in all I see Bushveld as a fairly unique play currently and distinctly undervalued. Add to that the fact that its technicals are becoming distinctly less stretched (as they were recently with the rise) and I intend to remain invested.
Andy28
Bushveld certainly has cash. The Lemur acquisition brought about $16m AUD for the company
Tim reynolds
Paragon have recently entered into a subscription with lanstead securities . It’s not a placement it’s a subscription . The subscription is paid over 24 months and the notional 5 p per share is benchmarked to 6.8 p which gives lanstead a c 25 % discount every time they buy on a monthly basis . Paragon do not have a pile of cash available and need the monthly payment from lanstead to float the boat. I disagree entirely that a large proportion of the Market cap is in cash I suggest this is completely the opposite.
wildrides
Well thats about as clear as mud then .
robert p gammon
<a href=“http://s835.photobucket.com/user/beebong1/media/Proactiveslideshow1_zps7bc7cfd3.gif.html” target=”_blank”><img src=“http://i835.photobucket.com/albums/zz280/beebong1/Proactiveslideshow1_zps7bc7cfd3.gif” border=“0” alt=“BMN Mining Projects photo Proactiveslideshow1_zps7bc7cfd3.gif”/></a>
Libero
To ignore the reason for the SP fall at BMN and to then claim it’s cash pile is wafer thin is just plain wrong.
BMN is incredibly undervalued. They’re potentially over-stretched with many projects ongoing at once (iron, tin, coal, vanadium!) but they’re definitely undervalued at the current MC.